Nonprofit organization Encode, which co-sponsored California’s SB 1047 AI safety legislation, has requested permission to file an amicus brief in support of Elon Musk’s lawsuit against OpenAI. Encode believes that OpenAI’s planned transition to a for-profit company would “undermine” its mission to develop safe and beneficial technology.
OpenAI was founded as a nonprofit research lab but has recently taken on outside investments, creating a hybrid structure with a for-profit side. The company plans to transfer control of its operations to a Delaware Public Benefit Corporation (PBC), which would prioritize financial returns over safety concerns.
Musk, an early contributor to the original nonprofit entity, filed suit in November requesting an injunction to halt the proposed change, arguing that OpenAI is abandoning its philanthropic mission and depriving rivals of capital. Meta, Facebook’s parent company, has also joined Musk in his efforts to block the transition.
Encode’s lawyers argue that OpenAI’s plans would “balance” public benefit against financial interests, potentially compromising the organization’s safety-focused mission. They claim that the nonprofit OpenAI’s board will no longer be able to cancel investors’ equity if needed for safety, and that this could lead to a lack of accountability.
The transition has raised concerns among former employees and industry experts, who fear that OpenAI’s prioritization of commercial products over safety could harm the public interest. Encode is seeking to ensure that transformative AI technology is developed and deployed in a way that prioritizes safety and benefits society as a whole.
Source: https://techcrunch.com/2024/12/27/nonprofit-group-joins-elon-musks-effort-to-block-openais-for-profit-transition